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Chen, Natalie; Juvenal, Luciana - 2019

bilateral distance, tariffs, and the quality of their exports. Under the assumption that trade costs are both ad valorem and per … unit, our model predicts that markups rise with distance and fall with tariffs, but these effects are heterogeneous and are …

Persistent link: https://www.econbiz.de/10012179812

Estimating the gravity equation with the actual number of exporting firms

Minondo, Asier; Requena, Francisco - In: Estudios de Economía 40 (2013) 1, pp. 5-19

To estimate correctly the effect of variable trade costs on firms' exports, the gravity equation should control for the number of firms that participate in foreign markets. Due to the absence of these data, previous studies control for this omitted variable using econometric strategies that may...

Persistent link: https://www.econbiz.de/10011538740

Estimating the gravity equation with the actual number of exporting firms

Minondo, Asier; Requena Silvente, Francisco - In: Estudios de economía 40 (2013) 1, pp. 5-19

To estimate correctly the effect of variable trade costs on firms’ exports, the gravity equation should control for the number of firms that participate in foreign markets. Due to the absence of these data, previous studies control for this omitted variable using econometric strategies that...

Persistent link: https://www.econbiz.de/10009766156